Making the Most of Your Tax Refund
Has your tax return left you with extra cash? It can be difficult to decide the best way to use it.
Here are some ideas to help you make the most of your tax refund.
Start an Emergency Fund
Having an emergency fund can help you stay prepared for life’s unexpected expenses, including medical bills, car bills, and emergency home repairs. Using your tax refund to start an emergency fund can help provide you with peace of mind knowing you have money set aside for expenses like these. Fairmont Federal Credit Union’s Share Savings accounts are a great place to keep your emergency fund. They are easy to open and offer a low minimum balance, unlimited deposits, and dividends.
Save for Future Expenses
Are you planning for a large expense, such as buying a new car or going on a vacation? FFCU’s Savings Club accounts can help you save for these goals. A Savings Club offers a place to set money aside from your other accounts, making it easy to keep track of how much you have saved towards your goal. If you are looking towards the holidays, consider opening a Holiday Club, which will automatically empty into your savings account just in time for your holiday shopping.
Put a Dent in Your Debt
If you have debt that is preventing you from reaching your financial goals, you can use your tax refund to help make progress towards your payoff. Whether you have credit card debt, student loans, or personal loans, using your tax refund to get caught up or get ahead on your payments could be helpful as you strive to reach your financial goals.
Invest in your Child’s Future
If you are looking for a way to kickstart an education fund for your child, consider putting some of your tax refund into a Coverdell Education Savings Account (ESA). An ESA allows you to save for post-secondary education in an account that earns tax-free dividends. The money that you save can be used for a variety of expenses, including tuition and fees, room and board, books, supplies, and other educational needs.
Complete Home Improvement Projects
Do you have an old appliance you would love to replace, a room that needs new carpet and a fresh coat of paint, or a list of little projects you would love to get done around the house? You may want to consider using your tax refund for a home improvement project. If your sights are set on an even bigger project, FFCU can help out with our Personal Loan and Home Equity Loan offerings. Home improvements can help make your house fit your needs, as well as increasing its value, making them a great place to use your tax refund.
Of course, there are many of other productive ways to use your tax refund. Ask us how we can help you use your tax refund to meet any goals you may have.
